Boost from Hong Kong's Bitcoin ETF Launch Aids Post-Slump Recovery
Summary:
On April 30, Bitcoin (BTC) stabilized, boosted by the Hong Kong launch of new Bitcoin exchange-traded funds (ETFs), marking a notable industry development in Asia. Bitcoin reached local highs of $64,714 on Bitstamp following the daily close. Blockstream's co-founder and CEO, Adam Back highlighted the clear contrast between Hong Kong and the United States' early ETF operations. Post-weekend's slump of under $62,000, BTC prices recovered pleasingly. However, funding rates across derivative platforms remain marginally negative, indicating an uncertain market.
On April 30, Bitcoin (BTC) aimed to stabilize after receiving a morale boost from a significant institutional development in Hong Kong. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin hit local highs of $64,714 on Bitstamp post the daily close. This corresponded with the introduction of new Bitcoin exchange-traded funds (ETFs) in Hong Kong, signaling a considerable turning point for the industry in Asia which hasn't typically seen Bitcoin embraced as a common asset.
Tedtalksmacro, a financial analysis, noted in a recent commentary that while these inflows don't compare to US ETFs due to their economic size, it's an impressive shift from East, a lot different from a few years ago. This represents a gradual move towards Bitcoin becoming a global, macro asset.
Blockstream's co-founder and CEO, Adam Back, emphasized the notable contrast between the operations of Hong Kong and the US's initial spot ETFs that began trading in mid-January. Bitcoin price saw a pleasant recovery following the weekend's slump of under $62,000.
Prominent trader, Daan Crypto Trades, identified a falling wedge breakout which is currently undergoing a retest for potential support. Separately, Material Indicators co-founder, Keith Alan, questioned if the ETFs could single-handedly influence a long-term shift in price patterns. Alan also pointed out that the US Federal Reserve will make an interest rate decision on May 1, an event often followed by selling pressure on cryptocurrencies.
However, across derivative platforms, funding rates are marginally negative. For DecenTrader, a trading suite, this flatness could imply an uncertain market where traders could bet equally on a rise or fall. On the same note, trading firm QCP Capital warned of a possible over-complacency based on current macro developments (Middle East conflict, potential US stagflation, Yen weakness, US fiscal injection, and others). Altcoins are showing negative funding which paves a way for speculators to build leveraged long positions, it added.
Note: This article does not offer any investment advice or recommendations. Investing and trading carry risks, hence, individuals should undertake their own research before making a decision.
Published At
4/30/2024 11:21:07 AM
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